Notice of the State Council’s Measures on Promoting Foreign Investment Growth

To the people’s government of the provinces,autonomous regions and municipalities,the ministries and commissions of the state council and the direct affiliated institutions:

Active use of foreign investment is an important content of China’s opening-up strategy.The current economic globalization presents new characteristics.China is facing new situation and new tasks in the aspect of utilization of foreign capital.To deepen the structural reform of supply side,to advance and decentralize the power,to optimize service reform and further to improve the law ruling,internationalization and facilitation of foreign investment environment in our country,the following provisions are hereby specified to promote foreign investment growth and improve the quality of foreign capital:

I.Further reduce the restrictions on the foreign investment

(1)Full implementing the system of national treatment before entry and the negative list management.The negative list of foreign investment tested in the pilot free trade zone should be implemented in the whole country as soon as possible;the openness,transparency and standardization of the investment environment should be further improved.(Responsible by the National Development and Reform Commission and the Ministry of Commerce)

(2)Further expanding market access and opening-up scope.The special vehicle and new energy automobile manufacturing,ship design,feeder and general aircraft maintenance,international maritime transport,railway passenger transportation,gas station,business site of Internet access services,call center,performance brokerage,banking,securities and insurance industry should be open to the outside world;the opening-up timetable and road map should be clarified.(responsible by the Publicity Department of the CPC,the Office of Central Leading Group for Cyberspace Affairs,the National Development and Reform Commission,the Ministry of Industry and Information Technology,the Ministry of Transport,the Ministry of Commerce,the Ministry of Culture,the People’s Bank of China,the China Banking Regulatory Commission,China Securities Regulatory Commission,China Insurance Regulatory Commission,the National Railway Administration,Civil Aviation Administration of China,China Railway Corporation)

II.Developing the fiscal and taxation support policy

(3)Encouraging foreign investors to continue to expand investment in China.If the foreign investors invest the profits obtained from the resident enterprise in China in the encouraged investment projects and are in conformity with the prescribed conditions,the deferred tax policy should be applied and the withholding income tax will not be charged temporarily.(Responsible by the Ministry of Finance and the State Administration of Taxation)

(4)Giving play to the positive role of foreign capital in optimization of the service trade structure.The preferential policies of the enterprise income tax for the advanced service enterprises in the demonstration city of service outsourcing should be promoted to the country,to guide the foreign investment in high technology,high value-added service industry.(Responsible by the Ministry of Finance,the Ministry of Commerce and the State Administration of Taxation)

(5)Promoting the combination of foreign capital and foreign investment.The related tax support policy should be developed and provided for the overseas income of Chinese resident enterprise(including multinational regional headquarters)allocated to China.(Responsible by the Ministry of Finance and the State Administration of Taxation)

(6)The multinational companies should be encouraged to invest in China to set up regional headquarters.The local government should be supported to issue the policies to attract the multinational regional headquarters including the financial support and to actively participate in the global industrial structure adjustment.(Responsible by the provincial people’s government)

(7)Promoting the foreign investment to be transferred in the western region and the northeast old industrial base.The role of existing financial capital should be given full play,to actively support the scientific and technological innovation,ecological and environmental protection and public service development of the national development zone(Including economic and technological development zone,hi-tech industry development zone,special areas under customs supervision,etc.)in the western region and the northeast old industrial base and to improve the investment environment and the quality of capital attraction and to undertake high-level manufacturing industry transfer.(responsible by the Ministry of Science and Technology,the Ministry of Finance,the Ministry of Commerce,General Administration of Customs)

(8)Supporting the construction of infrastructure for key investment platform and major projects.The provincial people’s government should be encouraged to issue local government bonds to support the infrastructure construction of the national development zone,border economic cooperation zone and cross-border economic cooperation zone.The special local government bonds with the balance between the benefits and financing should be developed,to give priority to ensure the financing needs of the eligible major projects in the above areas.(responsible by the Ministry of Science and Technology,the Ministry of Finance,the Ministry of Commerce,the General Administration of Customs and the provincial people’s government)

III.Improving the comprehensive investment environment of national development zone

(9)Giving full authority of investment management to the national development zone.The national development zone should be supported to carry out the trial reform of relatively concentrated administrative permission.The national development zone should be guided to further implement the administrative simplification,combine the simplification and administration and optimize the services reform and should play a leading role in building excellent foreign investment environment.(responsible by the SCOPSR,the Ministry of Science and Technology,the Ministry of Commerce,the General Administration of Customs and the Legislative Affairs Office of the State Council)

(10)Supporting the implementation of national development zone project.Under the premise in accordance with the economic and social development planning,land use planning and overall urban planning,the priority should be given to the land for the project invested by foreign capital in the national development zone.The protection should be provided as far as possible.(the Ministry of Science and Technology,Ministry of Land and Resources,the Ministry of Housing and Urban-Rural Development,the Ministry of Commerce,the General Administration of Customs and the provincial people’s government)

(11)Supporting the national development zone to expand the capital introduction space.With the approval of the state council,the eligible national development zone should be allowed to adjust and expand the area;the adjacent development zones can be integrated,to establish enclave park;the inefficient used land for collection and storage should be provided with corresponding planning adjustment and approval simplification.(the Ministry of Science and Technology,Ministry of Land and Resources,the Ministry of Housing and Urban-Rural Development,the Ministry of Commerce,the General Administration of Customs and the local people’s government)

(12)Supporting the national development zone to improve the industrial supporting service ability.The production&service foreign-funded enterprise should be introduced in areas with ripe conditions,to carry out the pilot domestic and overseas maintenance of high technology and high added value projects and to promote the extension of processing trade in the global industrial chain and mid-range&high-end value chain.(Responsible by the Ministry of Commerce,the General Administration of Customs)

IV.Facilitating the talent entry and exit

(13)Improving the system of foreign talent introduction.The work permit system of foreigners coming to China should be implemented;the procedures of”notification+commitment”and”acceptance under allowable lack”should be applied,to provide convenience for foreign talent’s work permit.The regulations on the foreigners working in China will be developed and issued in 2018,so as to establish the work permit system of foreign talent in China with a unified standard and normalized specification.(responsible by the Ministry of Foreign Affairs,the Ministry of Public Security,Legislative Affairs Office of the State Council and the State Administration of Foreign Experts Affairs)

(14)Actively introducing the international talents.In the second half of 2017,the rules for foreign talent visa will be developed and issued,to perfect the foreign talent evaluation standard and expand the scope of the issue.The valid period of the visa for foreign talent should be extended;a long-term multiple-entry visa(5 years to 10 years)should be issued to the eligible foreigners,who may apply for the work permit and residence certificate with such visa.The regulations on permanent residence of a foreigner should be established,to clarify the conditions and procedures for a foreigner applying for permanent residence.(responsible by the Ministry of Foreign Affairs,the Ministry of Public Security,Legislative Affairs Office of the State Council and the State Administration of Foreign Experts Affairs)

V.Optimizing the business environment

(15)Improving the legal system on foreign investment.The unification of the laws and regulations on the domestic and foreign investment should be accelerated;the new basic law on foreign investment should be developed.The laws,regulations,rules and policy documents involving the foreign investment should be arranged;the laws and regulations or provisions not conform to the national opening-up policy should be cancelled or revised within a time limit.(Responsible by the relevant departments and the provincial people’s government)

(16)Improving the level of service for foreign investment.The complaint mechanism of the central and local enterprises with foreign investment should be improved;the prominent problems reflected by foreign investors should be solved through the coordination;the guarantee for the foreign investment enterprises enjoying national treatment after entry should be strengthened;the efforts should be made to build a unified open,competitive and orderly market environment.The system of directory listing for enterprises charging such as the administrative fees and government-managed funds,the enterprises management service fees by the government pricing should be established.(responsible by the National Development and Reform Commission,Ministry of Finance,the Ministry of Commerce and the provincial people’s government)

(17)Ensuring the free remittance of the foreign investors’profits.The profits,dividends and other investment income obtained by foreign investors in China according to law can be remitted freely in Renminbi or foreign exchange.(Responsible by the People’s Bank of China and the State Administration of Foreign Exchange)

(18)Deepening the management information sharing and business collaboration of enterprises with foreign investment.The”Internet+Government service”should be actively promoted;the regulatory mechanism of”Random sampling and random inspection by any inspector,and disclosure making”should be further improved;the efficient system of supervision and service in and after the process for the foreign investment should be established.The exchange and communication of the information management system between the commerce department and the administration for industry and commerce,customs department,quality inspection department and foreign exchange department should be strengthened,to realize the inter-departmental sharing information from the establishment to the operation of the foreign-funded enterprise.The new acceptance mode of”Single window and single form”for the commercial filing and business registration of the foreign-funded enterprise should be implemented.(responsible by the Ministry of Commerce,the General Administration of Customs,the State Administration for Industry and Commerce,the General Administration of Quality Supervision,Inspection and Quarantine,the State Administration of Foreign Exchange and the local people’s government)

(19)Encouraging the foreign investment in domestic enterprises optimize restructuring.The procedures should be simplified and the restrictions should be reduced,to support the foreign investors to set up foreign-funded enterprise in the form of acquisition.The domestic enterprises should be supported to introduce international advanced technology,management experience and marketing channels.The foreign capital should be encouraged to participate in the mixed-ownership reform of the state-owned enterprises.(responsible by the National Development and Reform Commission,the Ministry of Commerce,the State-owned Assets Supervision and Administration Commission of the State Council)

(20)Improving the protection of intellectual property rights for foreign-funded enterprises.The centralized regulation should be carried out against Internet piracy and patent infringement,trademark infringement and other intellectual property rights issues,to strengthen the judicial protection and administrative law enforcement and to intensify punishment against infringement violations of the law.(Responsible by the China’s Work Leading Group Office for the Campaign against IPR Infringements and Counterfeits,the State Administration for Industry and Commerce,the SAPPRFT and the State Intellectual Property Office)

(21)Improving the international competitiveness of research and development environment.The convenient conditions should be created for the operation of research and development center;the import formalities of the samples and reagents for the eligible research and development center should be simplified according to law,to promote foreign r&d investment.(Responsible by the General Administration of Customs and the General Administration of Quality Supervision,Inspection and Quarantine)

(22)Maintaining the stability and continuity of the policies on foreign investment.The local people’s government should keep the promise made to the investors and foreign-funded enterprises in accordance with the law and should perform various types of contracts concluded in the investment promotion activities in accordance with the law.(Responsible by the provincial people’s government)

The local government and relevant departments should attach great importance to the utilization of foreign capital under the new situation and should actively provide cooperation according to the division of responsibilities.The Ministry of Commerce should jointly with relevant departments strengthen the supervision and inspection to ensure that all measures are implemented,to continuously highlight China’s new advantage in investment introduction and to achieve stable growth by the use of foreign capital.

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